United Kingdom
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It's mainly because of emission standards. Those require extra technology that serves up the cost. That makes smaller cars more expensive and this it's attractive. This will change, once batteries become cheaper. Putting together a small EV is much easier and you don't have to worry about emissions. We will see that within the next five years or so.
While that def increases cost. Safety standards have much more to do with it. As these also make a huge difference to size and weight of cars.